Lesson 1.2.2a
1.2.2a Purpose of market research Quiz: Pearson Edexcel Business, Unit 2
20 questions
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Lesson 1.2.2a, Purpose of market research: 20 multiple choice questions for the Pearson Edexcel GCSE Business (1BS0), Unit 2: Spotting a business opportunity, written with Revision Ninja.
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The 20 questions
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What is a primary purpose of carrying out market research?
- Reduce staff turnover
- Understand customer needs
- Increase corporation tax
- Set employee wages
-
How does market research help a business to reduce risk?
- Providing demand evidence
- Guaranteed high sales
- Securing free grants
- Eliminating all costs
-
What can market research help a business identify in a market?
- Tax exemptions
- A market gap
- Government policies
- Supplier bankruptcies
-
Using research findings to decide whether to open a second branch is an example of what?
- Informing business decisions
- Registering for VAT
- Liquidating the firm
- Auditing annual accounts
-
Why might a firm carry out research before launching a new product?
- Reduce launch risk
- Increase production speed
- Lower supplier prices
- Avoid paying tax
-
Which task is NOT a typical purpose of market research?
- Reducing business risk
- Identifying customer needs
- Finding market gaps
- Setting wage bills
-
A café asking customers which new snacks they want is an example of what?
- Understanding customer needs
- Calculating gross profit
- Determining corporation tax
- Auditing financial records
-
Deciding not to launch a weak product due to research serves what purpose?
- Maximising tax liability
- Reducing financial risk
- Increasing fixed costs
- Widening profit margins
-
Testing a price via a customer survey is an example of informing what decision?
- Pricing decision
- Recruitment decision
- Dividend decision
- Taxation decision
-
Why does skipping market research increase the risk of a product launch?
- Stricter employment laws
- No demand evidence
- Higher fixed costs
- Increased corporate tax
-
Survey results showing strong demand and leading to business expansion demonstrate what?
- Liquidating assets
- Informing decisions
- Paying dividends
- Issuing shares
-
What is the best initial step to identify a service gap in a town?
- Researching customer demand
- Decreasing selling prices
- Liquidating the business
- Stopping all promotion
-
What is the most likely outcome of conducting thorough market research?
- Guaranteed high profits
- Better-informed decisions
- Zero operational costs
- Eliminated competition
-
Why is market research useful when considering a major business investment?
- Lowering interest rates
- Reducing tax payments
- Providing return evidence
- Guaranteeing zero losses
-
What action best reduces the failure risk when launching a new drink?
- Increasing product price
- Ignoring customer feedback
- Testing sample products
- Halting all advertising
-
What is never a reason for a business to carry out market research?
- Finding competitor prices
- Calculating tax payments
- Identifying customer needs
- Reducing launch risks
-
What does strong existing rival sales for a planned product show?
- No market demand
- Guaranteed future sales
- Zero market competition
- Demand and competition
-
What is a likely result of a business ignoring market research?
- Lower startup costs
- Higher profit margins
- Faster market growth
- Product failure
-
Using research to choose between two shop locations is an example of what?
- Informing decisions
- Setting tax rates
- Calculating revenue
- Recruiting staff
-
Which method helps a business reduce financial risk before launching nationally?
- Test marketing
- Decreasing advertising
- Mass production
- Price skimming
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